PERU’S INVESTMENT PROMOTION agency, ProInversion, is introducing new rules for auction concessions for hydro and irrigation projects.

The new rules will affect projects that were on the auction block under the country’s privatisation programme. These include the Olmos irrigation and hydroelectric development in Lambayequ and the 130MW of projects in Yuncan. The new guidelines are meant to generate more investor interest in the concession, and increase competition to develop and operate the projects.

The US$112M Olmos project includes a 41m high dam and a 14km diversion tunnel designed to divert water from the Huancabamba river. Construction of the project is expected to cost some US$245M. The Yuncan project is located approximately 320km north of Lima, and is due to start operation by end-2004.